Nippon Life affiliate gearing up for November IPO in India

Reliance Nippon looks to fund growth as middle class expands

TOKYO -- Nippon Life Insurance Group's Indian asset management arm will make its stock market debut in that country next month, looking to fund expansion as India's middle class puts more of its money in the market.

Reliance Nippon Life Asset Management's initial public offering on India's National Stock Exchange and the Bombay Stock Exchange will open for subscriptions in late October, with the listings set for early November. Nippon Life's stake in the company will fall from 49% to 42.88% with the IPO. The fresh capital will help Reliance Nippon expand operations as its assets under management rise, fueled by growth in India's middle class.

Cooperation between the two companies will continue, and Reliance Nippon products will remain available through Nippon Life's asset management subsidiaries. The Japanese insurer has seats on Reliance Nippon's board and keeps personnel at the company.

Nippon Life is expanding its asset management operations at home and abroad, targeting 70 billion yen ($623 million) in profit from group companies by fiscal 2020, through dividend payments and other income. That would be 60% more than in the year ended last March. The insurer is also considering investing in American asset management heavyweight TCW.